Sign up Australia
Proactive Investors - Run By Investors For Investors

Global Energy Ventures banks $1 million R&D tax rebate for CNG Optimum Ship development work

The company has almost completed tests for its unique ship designed to transport compressed natural gas (CNG).
GEV CNG Optimum Ship hold
An application for a R&D tax offset has been accepted

Global Energy Ventures Ltd (ASX:GEV) has received a refundable R&D tax offset rebate of more than $1 million for its work in developing a unique CNG Optimum Ship for transporting compressed natural gas (CNG).

GEV’s 2018 income tax return included an application for the R&D tax offset and this has been accepted by the Federal Government.

Consequently, the rebate of $1,002,330 has been received by GEV.

World-leading design

The proprietary CNG Optimum is a world-leading CNG ship design and the result of two decades in the development of marine CNG solutions.

READ: Global Energy Ventures passes second critical test in approval process for unique CNG Optimum Ship

Last month, the company passed the second of three critical tests which underpin the design of its CNG Optimum Ship with the third and final suite of tests, the ‘Cyclic Fatigue Test’, expected to be completed shortly.

The second of the American Bureau of Shipping (ABS) tests, the ‘Bend & Friction Test’, follows passing in August of the first test for ABS Class Approval, the ‘High-Pressure Test’.

The aim of the second test was to verify that CNG containment pipes in the hold of the ship can be forced together in such a way that the pipes will not move relative to each other, or relative to the ship, even in extreme seas.

This required applying a downwards force on the pipes to reflect what would occur in an Optimum ship’s hold in order to mobilise sufficient friction to prevent relative movement.

Cyclic fatigue test nears completion

The Cyclic Fatigue Test comprises three sub-tests required by the ABS Rules and Guidelines.

Long-term fatigue test: This requires cycling a representative pressure vessel for 10 times the design life of the ship from minimum pressure to the operating pressure.

For GEV's 30-year ship life this means that the test must recreate 300 years or 20,000 cycles.

This extremely rigorous test began in September with about 50% completed by early October.

Notched burst test after fatigue: This requires fatiguing a specimen through three times the design life, or 6,000 cycles, and then bursting the pipe with a machined notch embedded to prove the pipes’ ductility.

The test will run after the 20,000-cycle test is complete.

Cooled burst test after fatigue: This also requires fatiguing the specimen through three times the design life and then bursting the pipe after it has been cooled to simulate temperatures that would result from the Joule-Thompson cooling effect of gas escaping through a crack.

The specimen has been made and this test will be run after the cycling of the notched burst test is complete.

Testing is being carried out at the CFER Technologies testing facilities in Edmonton, Alberta, Canada.

Proof of Concept achieved

GEV’s chairman and CEO Maurice Brand said: “Recent progress was material on many fronts but achieving Proof of Concept for the CNG Optimum 200 ship had removed any uncertainly on the engineering and technical viability for global marine CNG.

“GEV is now into the final suite of tests, the 20,000-cycle test being around 50% completed, with the last two 6,000 cycle tests to be completed shortly.

“On completion, GEV will receive final ABS Full Class Approval for the design of the CNG Optimum 200 ship.”

As well as achieving Proof of Concept, the company has completed all supporting analysis and documentation for ABS Class approval.

Shipyards short-listed

Four shipyards have also been short-listed with the capability to build multiple CNG Optimum 200 ships.

Other recent developments include:

- Executed a Heads of Agreement with Indian Oil Corporation Limited (IOC) to negotiate a gas sale agreement to supply gas to the Port of Dehaj on the west coast of India;
- Appointed Lewis Affleck as the strategic advisor for Middle East gas supply;
- Partnered with Twinza Oil Limited through a Heads of Agreement to evaluate gas commercialisation of the PNG Pasca A field;
- Signed a Letter of Intent with Tamarind Resources Pte Ltd to identify, evaluate and pursue opportunities for stranded gas fields in Malaysia; and
- Obtained approval for an Advance Overseas Finding for overseas R&D activities.
View full GEV profile View Profile

Global Energy Ventures Ltd Timeline

Related Articles

oil barrels
April 26 2018
If the appraisal well is successful it could potentially be brought online as part of an early production scheme
onshore oil field
September 20 2018
Eland, along with its project partner, produced almost 1mln barrels of oil from the OML 40 licence in the first six months of the year, a significant year-on-year rise
picture of wind turbines
January 11 2018
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use